BMW heated seat subscription "experiment" FAILED

[AngryMan]

It doesn't cost BMW $1200 in material for heated seats. It could be <$50 in material. It probably cost more to not install seats in some cars then to install seats in all cars. Having different lines and options are expensive.
You're assuming that the price will stay the same, but BMW will now give heated seats for "free." In reality, they will just bundle it in other options, or raise the price of all cars and include it in the "standard" equipment.

"or RAISE the price of ALL cars and include it in the standard package "
THATS MY POINT !

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[Ghost Ryder]

The BMW “heated seat subscription” was a stupid idea.

I don’t mind paying a subscription for things that are kept current or improve over time. For example, a SiriusXM subscription or a subscription for updates BlueCruise functionality (such as updated road information or additional features).

paying a subscription to use a static function in the car is insane.

I think they give you an option to buy it outright.

I think options are a good idea. You can buy it or pay to use as needed. And if I don't want it, but the guy I'll sell the car to years from now want that option, then he can pay for it.

 

[azerik]

A BMW should come standard with heated and cooled seats IMO for the supposed premium experience it is.

Reality is the seat heater cost is less than $15 a seat. (I'm going to add some to the rear seats in the MME using Tusk UTV 'kits' someday)

 

[Ghost Ryder]

"or RAISE the price of ALL cars and include it in the standard package "
THATS MY POINT !

So your point is to raise price on all cars, so you pay for features whether you want them or not?

 

[Jimrpa]

So you've never noticed the " Climate use" and "accessories" tabs under "Where did my energy go" in the This Trip app ??

Yep. I just haven’t noticed a huge increase in accessories use in the winter?

 

[AngryMan]

So your point is to raise price on all cars, so you pay for features whether you want them or not?

What're you talking about ? That quote was YOURS. MY point is that making everything standard in hopes of you paying a subscription ELEVATES the price of the car wether you ever use the item or not . It doesn't lower the cost .

 

[Reign of Ravens]

I think it reflects a greater trend in society with shifting to subscriptions. Everyone wants a piece of this. We're seeing it in software, various delivery services are trying to encourage subscription-based membership, and unencumbered by cable delivery, it now seems like every entertainment studio is not happy to allow their content to be under someone else's streaming applications.

It makes sense: a subscription represents a steady stream of revenue that grows with your user base. There's financial security in that. But I think most of us are used to being able to track on both hands the total number of subscriptions we have. The idea of trying to keep track of 20+ subscriptions strikes me as being a bit crazy. I know I have almost always paid more up-front for software or services that allow a "lifetime one-time purchase" option, because I don't want to keep tracking down where my money is being siphoned away to each month, and I don't want to remember to cancel a subscription if I'm not going to be using something for a few months.

I don't fault the car companies for trying. I just hope the efforts fail.

And speaking of trends in society, another thing that has gotten out of hand in American society: tipping culture. I fully expect dealerships and car companies to try and implement that in some way in the coming years, too.

"Did you enjoy that BlueCruise experience? Select one of the buttons on-screen to consider tipping your Ford engineers!"

 

[Ghost Ryder]

What're you talking about ? That quote was YOURS. MY point is that making everything standard in hopes of you paying a subscription ELEVATES the price of the car wether you ever use the item or not . It doesn't lower the cost .

I pointing out that an OEM has a fix cost when it comes to producing a car. If it cost them less to build a car with extra equipment in it than two have multiple lines, than that would be the most optimal path. What they decide to charge and how they price their cars is another issue. They may decide to have a "low price base model" with no standard features for a low entry price and let the buyer decide to subscribe if they want those features at a later date. Vs having a higher base price and having those standard features included.

I'm arguing that I like option 1, where the price of entry is lower, and giving me the option to buy or subscribe to features that I want. Vs being force to pay for "standard" features that I don't want or don't use.

For instance, I have Park assist, but I don't want it or have every used it. If ford gave me a $500 credit, and deactivate that feature, I would gladly take that deal.

 

[xxiii]

IF they installed extended range batteries in EVERY Mach wouldn't that increase the cost/price of ALL the cars ?

Tesla has done and is planning on doing again this very thing, so i've heard. and then you can "upgrade" your range in the app on demand.

Also, FSD. (I know in the early days you had to add an upgraded camera package if you wanted or were going to want FSD, but I don't think its an option anymore?)

Isn't BMW the same ones who tried to do a subscription for android car auto play a few years ago, which also backfired? or was it someone else?

 

[Ghost Ryder]

I think it reflects a greater trend in society with shifting to subscriptions. Everyone wants a piece of this. We're seeing it in software, various delivery services are trying to encourage subscription-based membership, and unencumbered by cable delivery, it now seems like every entertainment studio is not happy to allow their content to be under someone else's streaming applications.

It makes sense: a subscription represents a steady stream of revenue that grows with your user base. There's financial security in that. But I think most of us are used to being able to track on both hands the total number of subscriptions we have. The idea of trying to keep track of 20+ subscriptions strikes me as being a bit crazy. I know I have almost always paid more up-front for software or services that allow a "lifetime one-time purchase" option, because I don't want to keep tracking down where my money is being siphoned away to each month, and I don't want to remember to cancel a subscription if I'm not going to be using something for a few months.

I don't fault the car companies for trying. I just hope the efforts fail.

And speaking of trends in society, another thing that has gotten out of hand in American society: tipping culture. I fully expect dealerships and car companies to try and implement that in some way in the coming years, too.

"Did you enjoy that BlueCruise experience? Select one of the buttons on-screen to consider tipping your Ford engineers!"

Completely agreed, especially on the tipping culture. I think it should be illegal to have a lower than min wage base for service worker. Let the establishment/market decide their pay like any other job. Eliminate tipping all together.

It was so refreshing when I traveled to Japan where tipping was frown upon. their philosophy is that if you tip, you were insulting them because you were assuming that they didn't make enough and needed your help. It was so nice to know what you're going to pay and not be pressure to tip.

 

[nuMach]

Used to work in a vehicle assembly plant. One production worker got a maximum suggestion award ($20k) for recommending omitting a (lets say 5 cent) nut securing the battery tray, as there were several used originally to secure. Plant was a 3 shift operation, plus sister plants that used the same chassis/battery tray.
The corp would sell their grandmother to a dog food company to save a nickle per vehicle.

cost of options is further complicated on the side of inventory, and material handling with having more storage locations and deliveries to the assembly line. They certainly do what they can to minimize the parts proliferation. Option packages instead of pick and choose, build design to eliminate fasteners and the operation to tighten (fewer workers). Its a science in itself providing choice of content, and minimizing costs.
Even so far as having a master cad drawing detailing all the footprints of equipment used for storage and machinery, so they can calculate the total area of the plant used for production vs empty space for tax calculations.
Believe me, they leave no stone unturned.
In manufacturers view, they are hoping to have legacy income after the sale 'renting' popular options. Apps on your phone, streaming services, etc. The subscription model is becoming normalized in the younger generation. Im sure we'll see this strategy fine tuned going forward.

 

[xxiii]

Some of these things are just a matter of skipping or visiting an alternative robotic station at the factory. the hardest part is doing the scheduling to minimize pauses or idle time.

Example: there will be an empty box or a hole the same size/shape where your ADAS hardware would go if you want the no-ADAS version. and it takes the robot the exact same amount of time to plug in the "fake" ADAS as the real one.

 

[Teslaeata]

I don’t pay other than absolutely essential subscriptions.

Trouble is, speaking as somebody who started work on the mid-70s when you were lucky to get a basic radio as standard and heaters had only been fitted as standard in trucks for a few years, the kids of today and the gullible (IMO) others are programmed to pay a a small amount pcm for this insurance - on a phone for example - because it’s only a small amount, X pounds for heated BMW seats (in their f***ing dreams), £50pcm for a ‘phone god knows the justification for that is, so much for Sky, so much for Netflix etc until before they know it they’re paying out a mortgage in drip, drip monthlies.

No thanks, I’ll have a cold arse and drive my own car.

From grumpy old UK git ?

 

[Mirak]

I think we should all be able to agree that there is a significant difference between charging subs for use of hardware versus software. Particularly if that software is at least nominally subject to continued development.

Whether BC, and it’s continued development and maintenance, is worth $800 a year (obviously it isn’t) is a totally different issue.

It would also be helpful to have more transparency into how the accuracy of BC is actually being improved (I kinda doubt that it is).

 

[Logal727]

I think it reflects a greater trend in society with shifting to subscriptions. Everyone wants a piece of this. We're seeing it in software, various delivery services are trying to encourage subscription-based membership, and unencumbered by cable delivery, it now seems like every entertainment studio is not happy to allow their content to be under someone else's streaming applications.

It makes sense: a subscription represents a steady stream of revenue that grows with your user base. There's financial security in that. But I think most of us are used to being able to track on both hands the total number of subscriptions we have. The idea of trying to keep track of 20+ subscriptions strikes me as being a bit crazy. I know I have almost always paid more up-front for software or services that allow a "lifetime one-time purchase" option, because I don't want to keep tracking down where my money is being siphoned away to each month, and I don't want to remember to cancel a subscription if I'm not going to be using something for a few months.

I don't fault the car companies for trying. I just hope the efforts fail.

And speaking of trends in society, another thing that has gotten out of hand in American society: tipping culture. I fully expect dealerships and car companies to try and implement that in some way in the coming years, too.

"Did you enjoy that BlueCruise experience? Select one of the buttons on-screen to consider tipping your Ford engineers!"

Yes welcome to Capitalism 101

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